The Children’s Place has filed for Chapter 11 bankruptcy protection and plans to sell substantially all of its assets. The children’s clothing retailer is seeking offers by December 9 and aims to complete a transaction by the end of December.
The company said its stores and websites remain open. It operates 514 stores across North America and two digital storefronts, with distribution in 13 countries through franchise and wholesale partners. Its brands include The Children’s Place and Gymboree. Ongoing inventory sales are expected to continue, subject to court approval.
The filing follows several years of financial pressure, including tariff increases and slower consumer spending. Bankruptcy documents list approximately $742 million in assets and $881 million in debts. The company received backing from Saudi-based Mithaq Capital, which acquired a majority stake in 2024, but its financial outlook has not significantly improved.
Leadership changes preceded the bankruptcy announcement. Interim Chief Executive Muhammad Asif Seemab and Chief Strategy Officer Muhammad Umair resigned from their executive positions but remain directors. Chief Financial Officer John Szczepanski assumed the roles of acting president and principal executive officer. Seemab also serves as managing director of Mithaq Capital.
In its most recently reported quarter, the second fiscal quarter of 2026, net sales declined nearly 19% from a year earlier. Management cited lower conversion and a sales mix heavily weighted toward clearance merchandise. Seemab also said comparisons were affected by elevated back-to-school demand in the prior-year period, when shoppers purchased ahead of anticipated tariff-related price increases.
Co-chief restructuring officer Rudy Morando said the company intends to conduct an efficient and transparent sale process while continuing to serve customers. The retailer has operated for nearly 60 years. Its shares, which have fallen substantially in recent years, were trading at approximately 18 cents per share on Monday, following Sunday’s bankruptcy announcement.